Rising grocery prices may have helped Donald Trump win the 2024 presidential election, but now they threaten his dominance – spurring the administration to order a sweeping investigation into potential price-fixing in the food chain, particularly by foreign players.
In an Executive Order signed Dec. 6, Trump ordered the Department of Justice and the Federal Trade Commission to establish Food Supply Chain Security Task Forces to “determine whether anti-competitive behavior exists in food supply chains in the United States, as well as whether control of food-related industries by foreign entities is increasing the cost of food products in the United States or creating a national or economic security threat to Americans.”
Food prices threaten Republican control
The move is the latest in a string of actions in recent weeks by the Trump administration to lower food prices, which are emerging as a threat to many Republicans up for reelection at the midterms and, by extension, the party’s control over Congress.
The president has faced mounting pressure for the rising cost of living in the US, and of food prices in particular, with his opponents attributing higher prices to his sweeping tariffs and recent immigration crackdowns on farms and in factories that undercut the cheap labor by immigrants on which the food system is built.
In response, the Trump Administration this fall eased access to visas for foreign workers for farm jobs, and in November it exempted from reciprocal tariffs dozens of food products and ingredients that cannot be produced sufficiently in the US, such as coffee and beef.
Executive Order points fingers at Biden and ‘foreign entities’
In the Executive Order Trump continues to deflect any direct responsibility for higher grocery prices, which rose dramatically during the pandemic under then-President Joe Biden.
Rather, in the Executive Order, he blamed the Biden administration and “foreign entities.”
In a corresponding Fact Sheet that accompanied the Executive Order, The White House said, “President Trump is fighting every day to reverse Biden’s inflation crisis and bring down sky-high grocery prices – and he will not rest until every American feels the relief at the checkout line.”
The White House said, “President Trump understands that an affordable and secure food supply is vital to America’s national and economic security, but that anti-competitive behavior threatens its stability and affordability.”
For support, The White House said, “In recent years, major players in America’s food supply chain have paid tens of millions to settle price-fixing lawsuits.”
The claim may refer to a $25 million settlement in 2012 to resolve price-fixing allegations for eggs, allegations in 2020 that the broiler chicken industry colluded to fix prices or other high profile cases.
Last month in a social media post, Trump tasked the Justice Department with investigating whether rising beef prices were related to “illicit Collusion, Price Fixing and Price Manipulation.”
He suggested any illegal behavior likely was due to “Majority Foreign Owned packers, who artificially inflate prices, and jeopardize the security of our Nation’s food supply,” and not American ranchers.
He added: “Action must be taken immediately to protect Consumers, combat illegal Monopolies, and ensure these Corporations are not criminally profiting at the expense of the American People. I am asking the DOJ to act expeditiously.”
The White House suggested other sectors, including seed, fertilizer and farm equipment, “may be vulnerable to anti-competitive manipulation that result in higher prices for farmers and consumers.”
It added, “Foreign-controlled companies are increasingly involved in key segments, potentially creating national security risks and driving up the cost of food for American families – issues the Task Forces are specifically directed to investigate.”
What happens next?
The Task Forces are empowered to take “such actions as are necessary to remedy any anti-competitive behavior,” according to the Executive Order.
They also are tasked with reporting their progress within six months and again with one year of the order. However, the transparency of their actions may be limited.
The White House said, “such briefings shall not include any information related to ongoing investigations, prosecutions, regulatory actions, or litigation nor any non‑public information regarding any food-related industry investigated pursuant to this order."
Nonetheless, The White House argues, the Task Forces are essential.
It stressed, “without aggressive enforcement, price-fixing and anti-competitive behavior will continue to inflate grocery bills and weaken America’s food independence.”
